The bad debt is treated in profit and loss account as:
Expense
Expenditure
Gain
Profit
The concession allowed, when debtors make immediate payment is known as:
Bad debts
Provision
Discount
New provision
A bad debt is:
Loss
What do we do with provision for bad debts in balance sheet?
Added to debtors account
Deducted from debtors account
Added to creditors account
Deducted from creditors account
At the end of the year, bad debts recovered account is transferred to the bad debts account. This will be:
Loss of the year
Reduces the bad debts written off during the year
Not affect at all
Increases the profit
Discount is allowed for:
Written off debts
Doubtful debts
No debts
Creditors
Why each business try to anticipate the amount which will be a loss because of bad debts?
To reduce tax
For a clear statement
For taking loans
To arrive at correct profit
The amount owing to a business which is not paid by the debtor.
Bad debt
Credit
Gains
Which word is used as no individual names, dates and amount details have been provided?
Debtors written off
Unpaid amount
Where will be the difference between provision for bad debts posted?
Profit and loss account
Balance sheet
Journal
Ledger
